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The answer is definitely yes. The first advantage that arises from merging is the increase of economies of scale. Economies of scale do not only increase in terms of the balance sheet but more so in terms of the human resource. For small businesses it is also likely that the balance sheets may have no much glory to show, however, the different shareholders may combine their intellect, experience and that of their personnel to develop a much stronger business.

It is very important to analyse your markets whether you are starting a business or you are in business already. Existing businesses continuously work on budgets/sales forecasts which should generally be influenced by the prevailing behavior of the market among other factors. You cannot derive your forecasts purely on targets you want to achieve, you have to check your targets against the reality of the market situation.

Considering the info about your markets is not an excuse for you not to achieve sales forecasts, however, it is a way to ensure that you can marry the right strategy to achieving your targets by using marketing analogies to derive your strategies.

In a perfect world each individual would jump at an opportunity of running a business free of risks and uncertainties, unfortunately this is not the case, behind every success there is a painful story.

Starting a small business comes with lots of challenges; entrepreneurs spend time and money developing a good business plan that is fitting for their prospective business. However, the management of risk is often overlooked by entrepreneurs who mistakenly believe that the loss is best dealt with once it has materialized.

Risk refers to a possible loss which may arise from operations, people, process, systems, and internal as well as external events. Once these are overlooked in your business operations they will interfere with your company’s financial stability.